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U.S. dominates global construction pipeline

American projects make up 38 percent of the total, followed by China with 24 percent

THE U.S. TOPS the global hotel construction pipeline in terms of project count, according to Lodging Econometrics. Overall, the pipeline increased 5 percent by projects and 4 percent by rooms over the same time last year with several stages of the pipeline hitting peaks by project and rooms counts.

LE’s most recent Global Hotel Construction Pipeline Trend Report released Thursday found the pipeline contains 14,779 projects with 2,412,736 rooms. There were 1,230,572 rooms in 6,896 projects under construction, all-time high. Another peak is in projects scheduled to start in the next 12 months with 4,599 projects and 651,133 rooms at the end the second quarter. There are an additional 3,283 projects and 531,031 rooms in the early planning stage of the pipeline.


U.S. projects made up 38 percent of the pipeline with 5,582 projects and 687,801 rooms. China was second with 3,574 projects and 647,704 rooms, or 24 percent of the pipeline, meaning both countries make up 62 percent of the total pipeline.

The UK was a distant third with 350 projects and 52,398 rooms followed by Indonesia with 345 projects and 56,373 rooms and Germany with 296 projects and 39,645 rooms.

Four of the top six cities in the world were in the U.S., including Los Angeles with 163 projects and 27,415 rooms; Dallas with 158 projects and 19,314 rooms; New York with 151 projects and 26,302 rooms; and Atlanta with 135 projects and 18,634 rooms.

The top companies are Marriott International with 2,682 projects and 452,459 rooms; Hilton Worldwide with 2,532 projects and 378,124 rooms, InterContinental Hotels Group with 1,798 projects and 263,057 rooms, and AccorHotels with 886 projects and 157,362 rooms.

“These four companies account for 53 percent of all projects in the global pipeline,” the report said.

Marriott, Hilton and IHG also dominated the U.S. hotel construction pipeline in the second quarter, LE released earlier.

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Summary:

  • Policy shifts and trade tensions shaped the U.S. hospitality industry.
  • A congressional deadlock triggered a federal shutdown from Oct. 1 to Nov. 12.
  • Visa limitations and the immigration crackdown dampened international travel.

THE U.S. HOSPITALITY industry navigated a year of policy shifts, leadership changes, trade tensions and reflection. From Washington’s decisions affecting travel and tourism to industry gatherings and the loss of influential figures, these stories dominated conversation and shaped the sector.

Policy uncertainty took center stage as Washington ground to a halt. A congressional deadlock over healthcare subsidies and spending priorities triggered a federal government shutdown that began on Oct. 1 and lasted until Nov. 12. The U.S. Travel Association warned the shutdown could cost the travel economy up to $1 billion per week, citing disruptions at federal agencies and the Transportation Security Administration. Industry leaders said prolonged gridlock would further strain hotels already facing rising costs and workforce challenges.

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